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Cutting Costs with Remote Workers: A Business Owner’s Guide

Remote work has been around for many years, but it was only in 2020 that it became the norm due to the pandemic. With businesses forced to adapt to remote work, many have discovered that they can cut costs by embracing this model. In this guide, we will discuss the costs that businesses can save by hiring remote workers, including office space, equipment and furniture, utility bills, health benefits, recruitment, productivity, and employee turnover.

Office Space

The cost of renting or buying office space is one of the biggest expenses for many businesses. By having employees work remotely, companies can save a substantial amount of money. According to a Global Workplace Analytics report published in 2019, employers can save up to $11,000 per year per employee by allowing them to work from home at least half the time.

By reducing the amount of office space required, companies can redirect this money to other areas of the business. They can invest in new technology or training for the employees. By reducing office space, some businesses have been able to offer better perks such as increased salaries or higher bonuses.

Equipment and Furniture

Office equipment and furniture can be a significant expense for companies. When employees work remotely, they are responsible for their own equipment and furniture, reducing the need for companies to provide these items. Computers, smartphones, and peripherals such as headsets and webcams are often part of an employee’s personal inventory.

When employees work from home, their setup usually includes at least a desk and chair, sometimes a filing cabinet, and possibly a bookcase. But these items are well within the budget of the average employee and don’t represent a significant investment for the company.

Instead of buying and maintaining equipment and furniture, companies can offer remote employees a stipend to purchase the equipment and furniture they need. This arrangement is sometimes referred to as a “bring your own device” or “BYOD” policy.

Utility Bills

When employees work remotely, the company can reduce the cost of utilities such as electricity, gas, and water. With fewer employees using the office, the company can expect to see a lower utility bill. There’s less need for lighting, heating, and cooling, and less usage of office equipment which also cuts the cost of utility bills.

In addition, cleaning and maintenance costs can be reduced when there are fewer people in the office. With less need to clean restrooms and empty bins, the janitorial staff may be able to work fewer hours, saving the company money.

Health Benefits

Many employers invest in health benefits for their employees, including health insurance, wellness programs, and gym memberships. When employees work remotely, they may not be able to use some of these benefits, such as on-site gym memberships.

Employers can still offer wellness programs and other benefits, but they don’t need to pay for gym memberships or similar perks that are specific to an office location. In addition, remote workers may be more likely to take care of themselves by eating healthy, exercising, and getting enough sleep because their work-life balance is better, which can in turn bring down the cost of health benefits.


Hiring new employees is a time-consuming and expensive process. Companies need to advertise job openings, sift through resumes, conduct interviews, and then train and onboard the new employee. Companies may also have to relocate the new employee or provide a relocation package, which can be a significant expense.

When companies hire remote workers, they can reduce the costs associated with recruiting, relocating and onboarding. Remote workers tend to live in different locations, and they can work from those locations, eliminating the need to move them to another city or state.

By having remote workers, businesses can reach a larger pool of talent, which means that they don’t have to settle for someone who is local or willing to relocate. Additionally, recruiters can conduct phone or video interviews, which eliminate travel costs.


Remote workers are typically more productive than in-office workers. When working from home, employees typically have fewer distractions, such as idle chatter, people stopping by their desk, or meetings. A study by Stanford University found that remote workers are 13% more productive than in-office workers.

There are several reasons why remote workers are more productive. One is that they can set their own schedule and work when they are most productive. Additionally, remote employees tend to work longer hours, as they don’t have a commute, and can work after traditional business hours.

Employee Turnover

Employee turnover is a significant expense for companies. In some cases, it can cost up to twice an employee’s salary to replace them. There are several reasons why employees leave a company, including a lack of satisfaction with their job, poor relationships with coworkers or managers, limited growth opportunities, and work-life balance issues.

Remote work can improve job satisfaction, which can lead to lower employee turnover rates. When employees work remotely, they have more control over their work environment and work-life balance. They can set their own schedule, take breaks when they need to, and work in an environment that is comfortable for them. In general, employees are happier when they have more control over these things.


Remote work is a cost-saving strategy that can benefit companies in many ways. By reducing the need for office space, equipment, furniture, utilities, health benefits, recruitment costs, and improving productivity and employee satisfaction, businesses can improve their bottom line. Of course, remote work isn’t for everyone, but for those companies who are ready to take the plunge, it can offer many benefits.

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